The Effects of Cash-Plus-Job-Training Programs on Young Adults: Evidence from a Randomized Controlled Trial

Last registered on July 20, 2023

View Trial History

Pre-Trial

Trial Information

General Information

Title

The Effects of Cash-Plus-Job-Training Programs on Young Adults: Evidence from a Randomized Controlled Trial

RCT ID

AEARCTR-0011791

Initial registration date

July 17, 2023

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published

July 20, 2023, 3:13 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country

United States of America

Region

Los Angeles County

Primary Investigator

Name

Marcella Catledge

Affiliation

University of Virginia

Contact Primary Investigator

Other Primary Investigator(s)

PI Name

Sidhya Balakrishnan

PI Affiliation

Jain Family Institute

Contact Investigator

PI Name

Ajay Chaudry

PI Affiliation

New York University

Contact Investigator

Additional Trial Information

Status

On going

Start date

2022-08-25

End date

2026-02-15

Keywords

Education, Labor

Additional Keywords

JEL code(s)

J24, J28, J30, J31, J33, J38, I24, I26, I28, I38

Secondary IDs

Prior work

This trial does not extend or rely on any prior RCTs.

Abstract

In the proposed project, we are conducting a randomized controlled trial (RCT) which will be evaluated using surveys. In August 2022, the Department of Social Services of Los Angeles (LA DPSS) began implementing a two-part program called the “TAYportunity plus Guaranteed Income” Program in which work-ready young adults aged 18 to 24 receive an unconditional guaranteed income in addition to job-training and apprenticeship opportunities for 36 months. Among eligible individuals (see eligibility criteria below), we randomly selected 300 individuals to participate in the TAYportunity program, and another 650 individuals were randomly chosen for the control group. Throughout the 36-month program we will conduct several short, 15-minute surveys of all 950 study participants that will be completed online or by phone. The surveys will be the same as across survey rounds, so that we obtain repeated measures of the same outcomes over time. All respondents will be compensated $20 for completing each of the surveys.

External Link(s)

Registration Citation

Citation

Balakrishnan, Sidhya, Marcella Catledge and Ajay Chaudry. 2023. "The Effects of Cash-Plus-Job-Training Programs on Young Adults: Evidence from a Randomized Controlled Trial." AEA RCT Registry. July 20. https://doi.org/10.1257/rct.11791-1.0

Sponsors & Partners

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Experimental Details

Interventions

Intervention(s)

The intervention is a program implemented by LA DPSS in which work-ready young adults aged 18 to 24 receive an unconditional guaranteed income in addition to job-training and apprenticeship opportunities for 36 months. The treatment group is receiving an unconditional cash transfer of $1,000 per month and is being offered the opportunity to participate in the TAYportunity program. The TAYportunity program consists of the following paths that interested participants can choose between (1) transitional subsidized employment for six months, 40 hours per week, at a rate of $15/hr; (2) apprenticeships in fields of construction, aero-space and bioscience; or (3) entrepreneurship support for participants interested in self-employment. Transfers are being made through participants’ electronic benefit transfer cards. Participants have been given full information regarding the magnitude of the transfers they will be receiving, when they are receiving those transfers, and the date on which transfers will end.

Intervention (Hidden)

Intervention Start Date

2022-08-25

Intervention End Date

2026-02-15

Primary Outcomes

Primary Outcomes (end points)

Labor hours supplied in the past month, income earned in the labor market in the past month, total expenditure, educational attainment, financial security, psychological well-being

Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)

Food security, housing security, value of savings, value of debt

Secondary Outcomes (explanation)

Experimental Design

Over 3,211 individuals applied to the TAYportunity plus Guaranteed Income Program. Of those 3,211, LA DPSS randomly selected (with help from the research team) 300 individuals into its program. Additionally, the research team randomly selected 650 individuals from the applicant pool who were not selected for the program to serve as the control group. The 300 treatment individuals were informed by LA DPSS that they have been selected for the program and have been invited to participate in a survey study. The 650 control individuals were contacted by LA DPSS and were informed that while they were not selected for the program, they have been invited to participate in a research study about their experience in the GROW program and in the labor market as a young adult in Los Angeles County. Throughout the 36-month program we will conduct several short, 15-minute surveys of all 950 study participants that will be completed online or by phone. The surveys will be the same as across survey rounds, so that we obtain repeated measures of the same outcomes over time. All respondents will be compensated $20 for completing each of the surveys.

Experimental Design Details

Randomization Method

The randomization was done in office by a computer. Stata was the program used to randomize.

Randomization Unit

Randomization was done at the individual level.

Was the treatment clustered?

Experiment Characteristics

Sample size: planned number of clusters

950 individuals

Sample size: planned number of observations

950 individuals

Sample size (or number of clusters) by treatment arms

300 individuals are in the treatment group, and 650 individuals are the in the control group

Minimum detectable effect size for main outcomes (accounting for sample design and clustering)

The required sample size was computed as follows. Desired power was 80%, at a significance level of 5%. We assume a 20% attrition rate and a correlation between multiple midlines of 0.5 (a higher correlation is conservative). Using these parameters, a control group of 650 and a treatment group of 300 households yield a minimum detectable effect size (MDE) for the treatment group relative to control of 0.17 standard deviations (SD). When we allow for multiple hypothesis testing, the MDE remains relatively low. Using Haushofer and Shaprio (2016) as reference, we obtain a FWER-adjusted target significance level of 3%. Repeating these power calculations with all other assumptions unchanged, we find an MDE of 0.19 for the treatment group relative to control.

Supporting Documents and Materials

IRB